1.

Rs Ltd purchased a vechile for Rs. 4,00,000. After 4 years its salvage value is estimated at Rs. 40,000. Find out the amount of depreciation to be charged every year based on straight line basis, and also show the vehicle account as would appear for four years assuming it is sold for Rs. 50,000 at the end of the fourth year when depreciation is charged to asset account. Prepare the ledger in the books of account of RS. Ltd.

Answer»

Rs Ltd purchased a vechile for Rs. 4,00,000. After 4 years its salvage value is estimated at Rs. 40,000. Find out the amount of depreciation to be charged every year based on straight line basis, and also show the vehicle account as would appear for four years assuming it is sold for Rs. 50,000 at the end of the fourth year when depreciation is charged to asset account. Prepare the ledger in the books of account of RS. Ltd.



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